Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer questions
During 2009, Eversharp Co. introduced a high-quality exercise product that has a guaranteed replacement product warranty. The company expects that 2% of the products sold will need to be repaired or replaced at an average cost of $25 per unit. The company sold 300,000 units in 2010.
-Related to the sale of the products in 2010, Eversharp Co. would record

A) a debit to Warranty Expense of $6,000.
B) a credit to Warranty Liability of $6,000.
C) a debit to Warranty Expense of $150,000.
D) a credit to Warranty Liability of $300,000.
E) none of the above.